Yew Grove REIT Strong strategy, tenants and total returns

Yew Grove REIT plc (LON:YEW) invests in office and industrial assets in RoI. Tenants are creditworthy, 95% multinational or governmental; this RoI regional-income REIT invests in assets that support rising income streams, based on rents that are at a fraction of Dublin CBD levels. Macroeconomic conditions pre (and even more so, post) COVID-19 support Yew Grove’s selection of locations, which exclude Dublin CBD. Sharp historical rises in Dublin CBD rents and easier accessibility of offices on the fringe of the centre have pointed occupiers to these latter “core+” locations, while regional office and industrial attractions are increasing.

  • Resources for growth: In 2019, Yew Grove raised €35.8m equity and purchased €61.8m investment assets throughout 2019 to February 2020. The shorter-term deliverable acquisition pipeline stands at more than €120m. Two months ago, shareholders renewed authority for a further up to €100m new equity raise.
  • Asset strategy: Management has deep, specialist knowledge. The portfolio has upside from embedded asset management potential and letting two voids (that have already added value). One had voids when bought, the other paid an early-lease termination premium for an asset with good following demand.
  • Valuation: Strong accounting returns amount to 3.1% p.a. since the 2018 IPO, post all investment costs. Even excluding the special dividend, Yew Grove is 140% of the UK sector’s historical dividend yield, on a growing dividend. Return on assets (EPRA EPS vs. NAV) is the highest in the peer group.
  • Risks: WAULT (term to expiry) stands at 7.5 years. Most asset values are below replacement cost. Yew Grove REIT has deployed in areas where rent rises and capital values have lagged Dublin CBD over the cycle: a good opportunity, with these market rents outpacing CBD in recent years.
  • Investment case: The well-located office assets offer value for money, both to FDI/government employers and their employees. The industrial assets are located where the IDA is promoting growth, which underpins market forces. The premium investment returns, underpinned by above-market yields, should prove more reliable in all potential market conditions.

DOWNLOAD THE FULL REPORT

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Yew Grove REIT

    More articles like this

    Yew Grove REIT

    Yew Grove REIT possible cash offer update

    Slate Office REIT has today issued a prospectus supplement in respect of the bought deal offering by Slate for subscription receipts and convertible unsecured subordinated debentures previously announced by it in connection with the possible cash

    Yew Grove REIT

    Yew Grove REIT updates on asset management

    Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced an update covering recent asset management activities. Yew Grove has agreed a lease surrender for its industrial unit L2,

    Hardman & Co

    Yew Grove REIT: Strong results, strong prospects

    Yew Grove REIT plc (LON:YEW) invests in office and industrial assets in the Republic of Ireland (RoI). RoI was the best-performing European economy in 2020, with inward investment from multinationals, including medtech. Yew Grove taps into

    Yew Grove REIT

    Yew Grove REIT Q2 interim dividend of 1.30 cents per ordinary share

    Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish Commercial property assets, has announced that the Board of Directors has approved the payment of an interim ordinary dividend in respect of the second quarter of 2021 (being the period from 1 April to 30 June) of 1.30 cents per ordinary share. This dividend will be paid on 27 July 2021 to shareholders on the register

    Yew Grove REIT

    Yew Grove REIT first day of dealings on the Main Market

    Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced that the entire issued ordinary share capital of Yew Grove will today be admitted to the primary listing segment

    Yew Grove REIT

    Yew Grove REIT AGM & EGM will be held on 25 May 2021

    Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced that a notice convening the 2021 Annual General Meeting and a notice convening an Extraordinary General Meeting of the Company are today

    Hardman & Co

    Yew Grove REIT: NAV rise validates an excellent strategy

    Yew Grove REIT plc (LON:YEW) invests in office and industrial assets in the Republic of Ireland (RoI). RoI GDP grew 3.4% in 2020, with 18.2% gross value added from multinational input. Yew Grove’s largest tenant segment

    Yew Grove REIT

    Yew Grove REIT Q&A: Asset management drove an increase in valuations (LON:YEW)

    Yew Grove REIT’s Jonathan Laredo discusses the highlights from their results, how they were able to grow the portfolio, reduce vacancy, and increase the rent roll, ESG, significant pipeline of potential acquisitions and what investors can expect for the reminder of the year in this exclusive interview with DirectorsTalk.

    Yew Grove REIT

    Yew Grove REIT full year results to be published on 22 March 2021

    Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced that its Full Year results for the period ended 31 December 2020 will be announced on Monday 22 March 2021. A briefing for analysts will take

    Yew Grove REIT

    Yew Grove REIT updates on recent asset management

    Yew Grove REIT plc (LON:YEW), which owns a diversified portfolio of Irish commercial property assets, has announced an update covering recent asset management. The Company has agreed a new lease for the entirety of the Gateway